It doesn't go down well for any blockchain native token, once the security exchange commission (SEC) decides to investigate its platform-native token, we have seen how it unfolds between SEC and Ripple (XRP) falling significantly in price while lots of investors lose interest in the token, ripple continues to suffer loss while it's still been investigated by the exchange commission, sadly one part suffers a great loss during such intensive investigation, while ripple case is yet to be decided toward the end of the year its price will remain undervalued pending when it case is been resolved.
Initial coin offering (ICO) has been used by several start-up crypto based-projects to successfully run a fully-funding program, while these processes have been a valid means of raising funds for start-up projects if proper paperwork is not put in order before launching such ICO it could become a problem in future for such project, binance a recognized leading exchange with its native token (BNB) on top 5 lists by market capitalization has maintained its position even in a bear market is probed by the Commission for allegedly holding an unregistered ICO sales of it native token in 2017 which sold for 15 cents at public sale and raised $15million which was used to project binance exchange and expanding its marketing campaign.
Such news is not good for any blockchain token as it creates FUD amongst investors lately the price of BNB has been fluctuating with the price down by 11% selling unregistered security tokens can be a big problem especially if it involves US citizens a report from Bloomberg socialize a US investor who did purchase BNB token at public sale price can be a proof to nail down binance for conducting an unlicensed public sale, binance team is yet to react as it remains calm about the situation stating it has fully ahead to all stipulated rules.
This could be a blast for the binance token if SEC digs up into this ICO saga an imminent fall probably awaits the binance native token hope it doesn't go sideways.